Accounting Body Condemned by ILCU

It seems that accountants are going public on concerns over credit unions as the latest spat hit the media headlines. http://www.independent.ie/business/irish/accountantcondemned-for-advising-members-to-bank-funds-1227242.html

This follows recent media revelations of the scale of investment losses it appears credit unions are exposed to.

Many now fear the regulators move to restrict the type of investments credit unions can engage in, has either been ignored or come to late for some as chickens come home to roost within credit union investment portfolios.

Of note also is the more recent use of robust language and blunt public messaging by regulatory officials and accountants.

Meanwhile it seems many credit union members will attend AGM's in the run up to Christmas and may well be hearing of static or reduced dividend payouts. It cannot be good news that rates may fall just as competitors deposit interest rates are rising with headline rates of 5% appearing as fresh campaigns for retail deposit funds take off.

2008 may prove to be one of the most difficult years in a long time for many credit unions as they face a signficant increase in high street competition along with the prospect of higher levels of loan default as economic activity cools rapidly. Of course many may well see an uplift in loan demand as it is likely that people will turn to credit unions as a personal lender of last resort as their easy access to credit dries up elsewhere. Which may well increase loan porfolio credit risk.